We went shopping at TJ Maxx and Macy's Backstage and found the messier store was better for a bargain

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We went shopping at TJ Maxx and Macy's Backstage and found the messier store was better for a bargain
TJ Maxx
  • Off-price stores are booming in today's retail climate.
  • Macy's is adding a total of 57 locations of its off-price store Backstage in 2020, as part of a three-year revitalization plan announced on February 4.
  • TJ Maxx, a leading off-price retailer, continues to see solid revenue growth in a tough retail environment.
  • We compared the shopping experience at Macy's Backstage and TJ Maxx to find out which off-price store is better.
  • Though TJ Maxx's store is messier and more cramped than Backstage's, it provides a larger and more diverse selection of products in terms of size, style, and brand.
  • Visit Business Insider's homepage for more stories.

Off-price stores are thriving in today's retail climate, and more retailers want in on the discount boom.

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On February 4, Macy's announced a three-year revitalization plan in hopes of turning the tide against slumping sales. One part of the plan called for rolling out 50 locations of Backstage, Macy's off-price store model, within existing Macy's stores and opening seven standalone venues in 2020.

Backstage has been a bright spot in the company's earnings reports in recent years. Macy's CEO Jeff Gennette said in a 2018 earnings call that off-price is driving up customers' spending and that visits to Macy's stores offering the model have increased.

Macy's Backstage has a separate buying team and different vendors from a typical Macy's store, but it also sells its full-price stores' overstock, which accounts for a limited portion of its inventory.

TJ Maxx, one of the leading off-price retailers, has been delivering solid revenue growth in a tough retail environment.

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"The off-price and discounters are here to stay," Retail Metrics founder Ken Perkins said to CNBC in 2019. "These are going to be the names that fare well here. I don't see that changing at all."

TJ Maxx's stock comes from a variety of places, including department stores' and manufacturers' overstock, and some exclusive merchandise is made only for the off-price chain.

We decided to put the two stores to the test. Here's how our shopping experience at Macy's Backstage and TJ Maxx compared:

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First, we visited a standalone Macy's Backstage store in Elmhurst, New York. We were greeted by a very spacious, open, and bright space fully stocked with goods. It looked like a part of the traditional Macy's at first sight.

First, we visited a standalone Macy's Backstage store in Elmhurst, New York. We were greeted by a very spacious, open, and bright space fully stocked with goods. It looked like a part of the traditional Macy's at first sight.

We first saw some racks of single pieces. The vast majority of items there were not from well-known or designer brands, but they were about 50% off their original prices.

We first saw some racks of single pieces. The vast majority of items there were not from well-known or designer brands, but they were about 50% off their original prices.
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Not only were recognizable brand-name items hard to find, they also came with smaller discounts compared with those from lesser-known brands. Here, for example, the Guess top was about 25% off while the Cable & Gauge one was more than 55% off.

Not only were recognizable brand-name items hard to find, they also came with smaller discounts compared with those from lesser-known brands. Here, for example, the Guess top was about 25% off while the Cable & Gauge one was more than 55% off.

Another issue we saw was the lack of smaller sizes. The vast majority of single pieces were large and extra-large. There was only one extra-small option in the single piece area.

Another issue we saw was the lack of smaller sizes. The vast majority of single pieces were large and extra-large. There was only one extra-small option in the single piece area.
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A great deal of styles in the women's section had more than one piece and size available, but again, most of them were not from well-known brands.

A great deal of styles in the women's section had more than one piece and size available, but again, most of them were not from well-known brands.

This Backstage location did carry a lot of Calvin Klein items and offered huge discounts on them. This blazer, for example, was 65% off.

This Backstage location did carry a lot of Calvin Klein items and offered huge discounts on them. This blazer, for example, was 65% off.
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We saw a lot of signs stating a section's price range, brands, and theme, but they were not always so helpful. For example, we spotted some short-sleeve tops on the "sweater weather" racks.

We saw a lot of signs stating a section's price range, brands, and theme, but they were not always so helpful. For example, we spotted some short-sleeve tops on the "sweater weather" racks.

On the Rachel Roy racks, we didn't find a single product from the brand.

On the Rachel Roy racks, we didn't find a single product from the brand.
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And not every piece in the "29.99 & under" section was within that range.

And not every piece in the "29.99 & under" section was within that range.

It seemed that Backstage didn't put these price range signs out to split up the products, but to tell shoppers, "Hey, everything is affordable!"

It seemed that Backstage didn't put these price range signs out to split up the products, but to tell shoppers, "Hey, everything is affordable!"
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There were three clearance areas for women's apparel: a large plus-size section and two smaller ones for regular-size items. We found that almost all items on the clearance racks were under $10 after additional price cuts.

There were three clearance areas for women's apparel: a large plus-size section and two smaller ones for regular-size items. We found that almost all items on the clearance racks were under $10 after additional price cuts.

Next to the women's clothing section was a small but crowded beauty and accessories division.

Next to the women's clothing section was a small but crowded beauty and accessories division.
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These were all of the makeup products available. We didn't find anything from a recognizable brand. But all of the items here were super cheap, and many were under $5.

These were all of the makeup products available. We didn't find anything from a recognizable brand. But all of the items here were super cheap, and many were under $5.

The same thing was true for skincare products.

The same thing was true for skincare products.
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We did spot a few Versace, Chloé, Tory Burch, and Givenchy products in a small glass display counter inside the bag section.

We did spot a few Versace, Chloé, Tory Burch, and Givenchy products in a small glass display counter inside the bag section.

The shoe section had limited space and options, but most styles were available in almost every size.

The shoe section had limited space and options, but most styles were available in almost every size.
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The menswear section occupied a much smaller area than women's apparel in this store, though it seemed to offer a better selection of items in terms of style, size, and brand.

The menswear section occupied a much smaller area than women's apparel in this store, though it seemed to offer a better selection of items in terms of style, size, and brand.

The menswear section also sold some smaller items like wallets and grooming kits, though these products usually came with a smaller discount than the apparel did.

The menswear section also sold some smaller items like wallets and grooming kits, though these products usually came with a smaller discount than the apparel did.
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There was one clearance area in the section, though the additional price reductions here were not as steep as those in the womenswear section.

There was one clearance area in the section, though the additional price reductions here were not as steep as those in the womenswear section.

We came across a tiny luggage area in the men's section, which stocked some Calvin Klein suitcases that were around 50% off.

We came across a tiny luggage area in the men's section, which stocked some Calvin Klein suitcases that were around 50% off.
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Next to the men's division was the second largest section in the store: kids' clothing. This section offered diverse size options. We saw a lot of small and medium sizes here.

Next to the men's division was the second largest section in the store: kids' clothing. This section offered diverse size options. We saw a lot of small and medium sizes here.

And there were a lot more well-known brand-name items, like these 67% off Juicy Couture sets.

And there were a lot more well-known brand-name items, like these 67% off Juicy Couture sets.
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Finally, we reached the home department at the back of the store. The diversity of products made us feel like we were at a home decor store.

Finally, we reached the home department at the back of the store. The diversity of products made us feel like we were at a home decor store.

The discounts here were generally good, especially for large pieces. Some products here were slightly damaged, but with unbelievable markdowns. This $60 lamp was discounted to $4.96.

The discounts here were generally good, especially for large pieces. Some products here were slightly damaged, but with unbelievable markdowns. This $60 lamp was discounted to $4.96.
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You could basically find any household item here. Most goods had more than one piece and size available and were in great condition.

You could basically find any household item here. Most goods had more than one piece and size available and were in great condition.

Next, we hit a TJ Maxx in Manhattan, New York. The big red sign seemed to suggest that the long, narrow escalator was going to take us to a bargain heaven.

Next, we hit a TJ Maxx in Manhattan, New York. The big red sign seemed to suggest that the long, narrow escalator was going to take us to a bargain heaven.
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As soon as we stepped inside, we were greeted by racks of designer, brand-name products with over 50% off and multiple sizes available. And we immediately realized that the game would be different here.

As soon as we stepped inside, we were greeted by racks of designer, brand-name products with over 50% off and multiple sizes available. And we immediately realized that the game would be different here.

The Runway is an exclusive department offering high-end designer products. It is not available in every TJ Maxx store.

There were some amazing steals in the glass display counter in the area. These Giorgio Armani sunglasses were about 80% off.

There were some amazing steals in the glass display counter in the area. These Giorgio Armani sunglasses were about 80% off.
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Next to the designer area was an enormous section of single pieces. The area was pretty cramped. It seemed that TJ Maxx tried to squeeze in as many goods as possible. We saw a diverse selection of sizes and styles.

Next to the designer area was an enormous section of single pieces. The area was pretty cramped. It seemed that TJ Maxx tried to squeeze in as many goods as possible. We saw a diverse selection of sizes and styles.

Like in Macy's Backstage, the vast majority of items here were from lesser-known brands. But we found TJ Maxx's single pieces were generally cheaper than Backstage's, both in terms of their original prices and the reduced ones.

Like in Macy's Backstage, the vast majority of items here were from lesser-known brands. But we found TJ Maxx's single pieces were generally cheaper than Backstage's, both in terms of their original prices and the reduced ones.
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TJ Maxx didn't have many signs to help split the products. For the most part, shoppers had to search for treasures themselves. We saw a lot of empty hangers poking out from the racks ...

TJ Maxx didn't have many signs to help split the products. For the most part, shoppers had to search for treasures themselves. We saw a lot of empty hangers poking out from the racks ...

... and many items were left on the floor.

... and many items were left on the floor.
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Across from the women's apparel section was the accessory division. We'd usually expect jewelry in glass counters to be quite expensive. But here, they were all under $30.

Across from the women's apparel section was the accessory division. We'd usually expect jewelry in glass counters to be quite expensive. But here, they were all under $30.

There were also some luxurious Gucci watches, though they were only about 20% off the original price.

There were also some luxurious Gucci watches, though they were only about 20% off the original price.
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We then entered the men's section. We found a large selection of men's clothing in a variety of sizes and styles. Most items were from recognizable brands, with very affordable prices.

We then entered the men's section. We found a large selection of men's clothing in a variety of sizes and styles. Most items were from recognizable brands, with very affordable prices.

There was a small clearance section, though the further reductions were meager.

There was a small clearance section, though the further reductions were meager.
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There was no aisle separating the men's section and the shoe department. TJ Maxx clearly didn't want to waste a single square meter. The shoe area offered a mix of famous and lesser-known brands.

There was no aisle separating the men's section and the shoe department. TJ Maxx clearly didn't want to waste a single square meter. The shoe area offered a mix of famous and lesser-known brands.

Passing the women's single-piece area again, we went to explore the other half of the floor and found the jackpot: a huge women's clearance section.

Passing the women's single-piece area again, we went to explore the other half of the floor and found the jackpot: a huge women's clearance section.
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The majority of items here were not just from recognizable brands, but from high-end designer ones, and with great discounts. We thought that this would be the place to score a great deal.

The majority of items here were not just from recognizable brands, but from high-end designer ones, and with great discounts. We thought that this would be the place to score a great deal.

We also found quite a few products without any further reduction tag on clearance racks. We asked a shop assistant if they were on clearance, and she answered: "They ... should be? Yes, they should be."

We also found quite a few products without any further reduction tag on clearance racks. We asked a shop assistant if they were on clearance, and she answered: "They ... should be? Yes, they should be."
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Then, we found a great deal of plus-size options and another big women's clearance area, where most items were from lesser-known brands.

Then, we found a great deal of plus-size options and another big women's clearance area, where most items were from lesser-known brands.

We spotted some chaotic parts of the store.

We spotted some chaotic parts of the store.
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The bag department was across from the clearance section. We spotted a great quantity of Michael Kors products.

The bag department was across from the clearance section. We spotted a great quantity of Michael Kors products.

Then we entered the beauty division. Unlike in Backstage, we found tons of items from popular brands on the makeup product shelves ...

Then we entered the beauty division. Unlike in Backstage, we found tons of items from popular brands on the makeup product shelves ...
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... and skincare product shelves ...

... and skincare product shelves ...

... and fragrance product shelves. Most of them came with pretty generous discounts.

... and fragrance product shelves. Most of them came with pretty generous discounts.
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Well-known brand-name items were boxed up in plastic or wrapped with detectors to prevent shoplifting. This made it easier to find them, but harder to read the price.

Well-known brand-name items were boxed up in plastic or wrapped with detectors to prevent shoplifting. This made it easier to find them, but harder to read the price.

Finally, we went downstairs to the home department, which took up almost the whole floor. In direct contrast to the messy areas we spotted upstairs, the home division was clean and organized, and it was fully stocked with a variety of products.

Finally, we went downstairs to the home department, which took up almost the whole floor. In direct contrast to the messy areas we spotted upstairs, the home division was clean and organized, and it was fully stocked with a variety of products.
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Though many products here had more than one piece available, there were also a great deal of single pieces.

Though many products here had more than one piece available, there were also a great deal of single pieces.

We saw one rack of clearance items, most of which had only $1 or $2 further reductions.

We saw one rack of clearance items, most of which had only $1 or $2 further reductions.
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Finally, we reached a long rack of suitcases. We spotted some Samsonite ones with a 60% discount.

Finally, we reached a long rack of suitcases. We spotted some Samsonite ones with a 60% discount.

In general, we preferred shopping at TJ Maxx. Though its store was messier and more cramped than Backstage's, it clearly offered a much larger selection of products in diverse sizes, styles and brands, and thus, a bigger chance to find steals.

In general, we preferred shopping at TJ Maxx. Though its store was messier and more cramped than Backstage's, it clearly offered a much larger selection of products in diverse sizes, styles and brands, and thus, a bigger chance to find steals.
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